Identifying Part-Time Employees
The next step for ACA pre-filing is identifying part-time employees. These are employees that do not meet the minimum number of hours to be considered full-time for a specified period.
To identify part-time employees:
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Go to Payroll and HR > Payroll > Affordable Care Act (Payroll Manager).
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If applicable, select the specific subsidiary from the View list.
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Select the payroll items that are considered eligible hours of service. These are used for determining an employee’s full-time status, as defined under Section 4980H. ACA-eligible payroll items include:
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Earning: Wage
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Earning: Salary
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Earning: Vacation
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Earning: Sick
The payroll items are automatically selected, but the list can be modified, if necessary.
Note:If the ALE member has multiple subsidiaries, at least one subsidiary must have payroll items set up. If a subsidiary does not have payroll items defined, a warning message appears showing which subsidiaries do not have payroll items defined. If there are multiple subsidiaries, you can choose payroll items for subsidiaries that do have them defined.
For more information about payroll items, see Payroll Items Setup. For more information about eligible hours of service, go to https://www.irs.gov/instructions/i109495c.
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Click Done to save the changes and return to the ACA landing page.
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To identify employees that do not meet the minimum number of hours to be considered full-time, click Set Part-Time.
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To filter the list of employees, specify a Start Date and End Date for the employees’ paychecks. These two dates must be at least three months apart.
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By default, the Show Employees Who Worked Less Than 130 hours per month and 30 hours per week boxes are checked. To show employees who fall outside of these parameters, clear the boxes.
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By default, the Show inactive and terminated employees in the current filing year box is not checked. To show these employees, check this box.
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Select one or more employees, and click Set to Part-Time.
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Specify the date range during which the employee will be considered part-time.
For example, an employee had an average of less than 30 hours per week, from January 1 to December 31, 2021. This employee may be set to part-time from January 1 to December 31, 2022 for the purposes of ACA. For more information, see https://www.irs.gov/instructions/i109495c.
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Click OK.
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Verify that the date range that the specified employees will be set to part-time status is correct in the 2020 Part Time Status column.
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Click OK.
The contact set up as the default recipient for ACA notifications receives an email message after the changes have been applied. For more information, see Setting up a Default Recipient for ACA Notifications.
To make changes, click Edit Hours from the ACA landing page.